Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: SeekAndFind
Money is not going into new jobs
There is a negative ROI on
injecting Capital into this economy

M1 Multiplier is PERSISTANTLY below 1.0, and dropping

M2 Velocity is sinking rapidly

Banks are holding onto money, instead of investing it

Remember, Monetary Velocity is the Single Best Indicator of Economic Health

Unemployment is becoming permanent

Corporations are sequestering Money, instead of investing


4 posted on 09/08/2013 8:00:24 AM PDT by HangnJudge
[ Post Reply | Private Reply | To 1 | View Replies ]


To: HangnJudge

Well, if money velocity is dropping as the chart you present shows, this tells us that all these QE’s the Fed is doing isn’t really affecting the economy.

It also tells us that THAT is the main reason why despite the FED pumping money, inflation is relatively tame.

There is an explanation as to why Money Growth does not necessarily lead to inflation here (for those interested):

http://www.forbes.com/sites/johntharvey/2011/05/14/money-growth-does-not-cause-inflation/


6 posted on 09/08/2013 8:09:22 AM PDT by SeekAndFind
[ Post Reply | Private Reply | To 4 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson